ARYADHAN FINANCIAL SOLUTIONS PRIVATE LIMITED v. STATE OF KARNATAKA
WP/11685/2026 · 2026-04-09
Sachin Shankar Magadum
body2026
DailyLaw.ai
[ 2026 DAILYLAW 7417 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 7417 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 11685 OF 2026 (GM-RES)
BETWEEN:
1. ARYADHAN FINANCIAL SOLUTIONS PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, REGISTERED OFFICE AT NO. H82, SECTOR 63, GROUND FLOOR, BEHIND GINGER HOTEL, NOIDA-201301,
BRANCH OFFICE AT NO.91/94/445, 3 MAIN, 2ND CROSS, A BLOCK, DCM TOWNSHIP, DAVANAGERE-577003
2. ARYA COLLATERAL WARE HOUSING SERVICES PVT. LTD., REGISTERED OFFICE AT NO. H82, SECTOR 63, GROUND FLOOR, BEHIND GINGER HOTEL, NOIDA- 201301, BRANCH OFFICE AT NO.91/94/445, 3 RD MAIN, 2ND CROSS, A BLACK, DCM TOWNSHIP, DAVANAGERE- 577003 …PETITIONERS
(BY SRI. ARCHANA MURTHY., ADVOCATE)
Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
AND:
1. STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF APMC, VIDHANA SOUDHA, BENGALURU 560001
2. THE DEPUTY COMMISSIONER DC OFFICE KARUR INDUSTRIAL AREA DAVANAGERE 577 006
3. THE TAHSILDAR, TAHSILDAR OFFICE COMPOUND, STATION ROAD, DAVANAGERE-577004
4. THE MANAGER, KARNATAKA STATE CO-OPERATIVE MARKETING FEDERATION (KSCMF), DAVANAGERE AUTOMOBILE SOCIETY BUILDING, OPPOSITE TO POOJA HOTEL, P.B. ROAD, DAVANAGERE 577006
5. M/S. SANJEEVINI CATTLE FEEDS AND POULTRY FEEDS, NO.327, OLD PB ROAD, NEAR GHOSHALA, DAVANAGERE- 577002 REP BY ITS PROPRIETOR MR. VASUDEVA A.M.
ALSO AT NO.783/A4, NEAR BHAGIRATHA CIRCLE, JAYANAGAR, B BLOCK, DAVANAGERE, KARNATAKA 577004. 6. THE ASSISTANT SECRETARY, APMC, DAVANAGERE OFFICE BLDG P B ROAD, APMC YARD, RM YARD DAVANAGERE,
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
DAVANGERE-577003, KARNATAKA
7. THE SECREATARY APMC DAVANAGERE. OFFICE BLDG P B ROAD, APMC YARD, RM YARD DAVANAGERE, DAVANGERE-577003, KARNATAKA …RESPONDENTS
(BY SRI. ADITYA DIWAKAR, AGA FOR R1 TO R3 SRI. M.R. RAJAGOPAL, SR. ADVOCATE FOR SRI. P. ANAND, ADVOCATE FOR C/R4 (CP8880/2026)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ACTION OF THE RESPONDENTS IN SEALING THE GODOWN PURSUANT TO THE PROCEEDINGS DATED 01.04.2026 VIDE ANNEXURE-F AND THE MAHAZAR DATED 04.04.2026 VIDE ANNX-F. DIRECTING THE RESPONDENTS TO FORTHWITH DE SEAL THE GODWON OR IN THE ALTERNATIVE PERMIT THE PETITIONER TO HAVE ACCESS TO AND DEAL WITH ITS SECURED COMMODITY IN ACCORDANCE WITH LAW.
DECLARE THAT THE ACTION OF RESPONDENTS IN SEALING THIRD PARTY GOODS AND PREMISES IS ILLEGAL ARBITRARY AND UNCONSTITUTIONAL. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
ORAL ORDER
Heard the
learned counsel appearing for the petitioners and the learned Senior Counsel appearing for respondent No.4. Perused the pleadings, documents
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
placed on record, and the material made available for
consideration.
2. The substratum of the controversy, as emerges from the records, indicates that respondent No.4, which is a State instrumentality, has entered into a contractual arrangement with respondent No.5/manufacturer for certain commercial transactions. The petitioners, however, do not claim any privity of contract with respondent No.4, but assert that they have financially invested a sum of Rs.2.5 crores in respondent No.5/entity and thereby claim an equitable interest in the subject matter. It is in this backdrop that, owing to the alleged breach of contractual obligations by respondent No.5, respondent No.4 has initiated action to seize the warehouse in exercise of its contractual and statutory rights. The grievance of the petitioners is that such unilateral action has the effect of seriously prejudicing their financial interests, inasmuch as their investment in respondent No.5 is put to peril without affording them an opportunity of being heard.
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
3. Having bestowed anxious consideration to the rival submissions, this Court is of the considered view that the lis projected in the present writ petition does not disclose any enforceable public law element warranting interference under Article 226 of the Constitution of India. The claim of the petitioners is essentially founded on their alleged financial arrangement with respondent No.5, which is, at its core, a private commercial transaction. In the absence of any privity of contract between the petitioners and respondent No.4, and in the absence of any statutory right being infringed, the dispute sought to be projected is clearly civil in nature. The appropriate remedy for the petitioners, if so advised, lies in instituting a properly constituted civil suit seeking appropriate reliefs, including protection of their alleged financial interest, before a competent civil Court. This Court, exercising its writ jurisdiction, cannot adjudicate upon disputed questions of fact arising out of private contractual arrangements.
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HC-KAR NC: 2026:KHC:19972 WP No. 11685 of 2026
4. In that view of the matter, while declining to entertain the writ petition, this Court deems it appropriate to reserve liberty to the petitioners to avail such remedies as are open to them in law before the competent forum. All contentions are left open to be urged before such forum. Consequently, the writ petition stands dismissed.
Sd/- (SACHIN SHANKAR MAGADUM) JUDGE
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